The JOBS Act – Where Are We Now – 2014?

On April 5, 2012, President Barack Obama signed the Jumpstart Our Business Startups Act (the “JOBS Act”) into law. The stated purpose of the JOBS Act was to increase job creation and stimulate economic growth. Often referred to as the “IPO on-ramp,” the JOBS Act was enacted in part to improve access to public capital markets by alleviating, or in some instances eliminating, some of the restrictions placed on a new category of companies called “emerging growth companies” (“EGCs”) during the initial public offering (“IPO”) process.

Market Overview 2013/2014 -

Since the passage of the JOBS Act, the U.S. IPO market has strengthened significantly. In fact, 2013 was a record year for the U.S. IPO market—the best since 2000—with a total of 222 companies going public, generating approximately $55 billion in proceeds. By comparison, in 2012, roughly 128 companies completed an initial public offering, generating approximately $43 billion in proceeds. In the last quarter of 2013 alone, 70 companies priced IPOs – more than any other quarter that year. In 2013, the average U.S. IPO return rate was a staggering 41% compared to an average return rate of 21% in 2012. For the first time since 2004, the North American region (the United States and Canada) surpassed other regions, including the Asia Pacific region, with roughly a 29% gain in proceeds raised and an average return of approximately 26%.

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Published In: Business Organization Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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